The U.S. State Department said on Friday it fully expects to finalize new trade exemptions for the AUKUS defense project with Australia and Britain in the next 120 days, signaling a further delay in the move, but offering the prospect of a positive outcome in the project to counter China.
The 2024 National Defense Authorization Act requires U.S. President Joe Biden to determine within 120 days of his signing it into law on Dec. 22 whether Australia and Britain have export control regimes "comparable to the United States" and thereby qualify for the exemptions. The 120-days is reached on Saturday.
"Exemptions in our export control systems, within a framework of shared standards with Australia and the U.K., are key to harnessing and maximizing the innovative power residing in our defense industrial bases," the State Department said.